Personalized ads – effectiveness and attitudes

What is the profit this development brings along for both, marketers and costumers? And what are the challenges?

Online shopping has become a part of everyday life for many and thanks to rapidly advancing technologies, it is now possible to record and process customer data and shopping behavior in order to target users with product suggestions that suit their interest. In the following we are focusing on the effects a personalized marketing and the consumers’ attitudes towards it, starting with the quality of the personal suggestions they receive.

 

In total the majority of consumers that taking notice of personalized suggestions feel that the individual recommendation they receive fit their shopping interests.  58 percent of the attendants have a positive attitude towards it. A share that decreases with advancing age.

 

One of the most important questions for online shops is: when does a suggestion lead to a sale? Starting with the bad news: 14 percent of the total respondents never purchase a suggested article. Nevertheless, the majority follows the recommendation, either rarely (38 percent), occasionally (36 percent) or even frequently (12 percent). Again, a result that is directly connected to the age of the consumer.

 

Since people tend to feel tracked when being online, receiving personalized advertisements has a bitter aftertaste for some – an important aspect that comes into account when trying to convert potential customers. As shown in the graphic above, the majority appreciates personalized adverts – as long as they do not feel tracked with regards to their location. An aspect that online shops should take notice of.
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As of January 2018